FAR Offers A Total Of $106,000 In Scholarship Awards

ORLANDO, Fla. –Dec. 11, 2007 – Florida high school seniors: Are you filling out college applications and poring over potential scholarship programs? Then make plans to enter the Florida Association of Realtors®’ (FAR) 2007-2008 Scholarship/Essay Contest for High School Seniors for a chance to win up to $10,000 in scholarship funding.

Entering the contest is easy. Students write a typed, double-spaced essay – 500 words or less – on the topic, “How Does a Realtor Professional Benefit the Community?” This topic allows students the freedom to write about the wide range of Realtor professionals who work in a variety of fields, including residential brokerage, commercial brokerage, industrial and office brokerage, farm and land brokerage, real estate appraising, property management, land development and real estate counseling, to name just a few of the general specialties. Or essays may address such points as the benefits of homeownership to society, or to families on a personal level, or how the selling of commercial real estate encourages economic growth.

“This scholarship program offers Florida Realtors the opportunity to demonstrate their dedication to their community by helping young people continue their education and realize their dreams for the future,” says 2008 FAR President Charles “Chuck” Bonfiglio. “There’s a side to the real estate profession that often goes unheralded – Realtors do a lot more for the community than people may realize. Now in its eighth year, our successful scholarship program is just one example.”

Now in its eighth year, FAR’s scholarship program benefits students from across the state, with prize money going to the first-, second- and third-place essays in each of the Association’s 13 districts. Students turning in the top district-winning essays will each win a $5,000 scholarship prize while the second-place entries will each receive a $1,500 scholarship award. Plus, students will be recognized for winning third in each district with a $500 scholarship award. The 13 district-winning essays will go on to compete to win three $5,000 FAR scholarships on the statewide level, for a total of $106,000 in scholarship awards. All essays, along with an official Essay Cover Form, must be postmarked before or on March 7, 2008, and mailed to the Florida Association of Realtors, 7025 Augusta National Drive, P.O. Box 725025, Orlando, FL, 32872-5025.

Check with the high school guidance office to obtain an application kit and essay cover form for FAR’s 2007-2008 Scholarship/Essay Contest for High School Seniors. Or go to the media section of FAR’s Media Center Web site, (http://media.floridarealtors.org) to download the scholarship/essay contest application kit, official cover form and list of FAR District Vice Presidents.

FAR’s statewide scholarship awards program is open only to high school seniors who reside in the state of Florida and plan on continuing their education at a college, university, technical school or other institution of higher learning. Children whose parents are licensed real estate practitioners are not eligible for contest entry; nor are children with parents employed by any local Realtor board/association or by the Florida Association of Realtors.

Just think: Write 500 words or less and win up to $10,000 – scholarship money that could cover the costs of tuition at a local community college or pay for a lot of the tuition costs at a Florida state university. Now that’s a scholarship that will go FAR.

© 2007 FLORIDA ASSOCIATION OF REALTORS

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Americans Believe Buying A Home Still A Good Financial Decision

LAS VEGAS – Nov. 16, 2007 – Americans remain convinced that buying a home is a good long-term investment – just one of the findings from the 2007 National Housing Pulse Survey, released during the National Association of Realtors® (NAR) annual Conference & Expo.

The survey measures how affordable housing issues affect consumers. This year’s results show that nearly nine out of 10 consumers believe that buying a home is a good financial decision. Fifty-nine percent of respondents also agree that now is a good time to buy a home; that number is higher (64 percent) in areas of recent home price declines.

“Owning a home continues to be a good, long-term investment, and most consumers understand that,” says NAR President Pat V. Combs. “This new survey clearly shows that people believe in the value of homeownership and know that owning a home is one of the best ways for most families to build a nest egg.”

This year’s survey shows that Americans are more concerned about obtaining a mortgage and having enough money for downpayment and closing costs than they have been in five years of polling. Nearly six in 10 respondents believe it’s difficult for people in their area to obtain a fair and affordable mortgage. More than eight in 10 say having enough money for downpayment and closing costs are obstacles for homebuyers in their area, up 17 percent from 2005. Sixty-three percent also think the mortgage approval process is an obstacle, up 13 percent since 2005.

“Buyers in the conventional market can still obtain mortgages at very favorable rates,” said Combs. “In addition, NAR is advocating for FHA modernization; changes to this program will help many more first-time buyers become homeowners.”

Of those surveyed, more than one in five homeowners have some type of variable-rate mortgage, including interest-only (15 percent), adjustable-rate (6 percent) and a balloon or other large payment due in the next five years (2 percent).

These homeowners feel more strain from their monthly mortgage payment than those with fixed rates. In fact, more than half of those with variable-rate mortgages say they feel a significant or slight strain, whereas fifty-three percent of those with fixed-rate mortgages feel little or no strain at all. Despite these findings, only five percent of respondents say they are very or fairly worried about being able to make their mortgage payments over the next year.

When it comes to challenges facing the mortgage market, Americans are split on the need for more federal government oversight. Forty-seven percent believe the federal government should take a more active role, while 45 percent believe oversight is the private sector’s responsibility.

While 32 percent of those surveyed perceived the rate of home foreclosures in their area to have increased over the past year, 39 percent report the rate has remained about the same; 6 percent believe the foreclosure rate has decreased in their area. When asked how big of a problem foreclosures were in their area, 38 percent of respondents said foreclosures were a very big or moderate problem, but the majority, 51 percent, said foreclosures were only a slight problem or not one at all.

“Realtors are in the business of helping people into homes, and we want to make sure they can afford to stay there,” Combs says. “NAR believes that one foreclosure is one too many, and we are working with government agencies, lenders and consumer groups to protect home buyers and sellers in the real estate transaction and beyond.”

The lack of affordable housing continues to be a greater concern than jobs, crime, terrorism or the environment. Nearly seven in 10 survey respondents are concerned about the cost of housing in their area. In the short term, more than half of survey respondents believe home sales and values in their neighborhood will remain about the same in the next three months. Only one-fourth of those surveyed believe sales and values will continue to decrease, while about 10 percent believe they will rise.

NAR’s Housing Opportunity Program conducted the 2007 National Housing Pulse Survey. The telephone survey was among 1,000 adults living in the United States in October 2007. The study has a margin of error of plus or minus 3.1 percentage points.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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HUD Settles With Six Builders Over RESPA Violations

WASHINGTON – Oct. 30, 2007 –The U.S. Department of Housing and Urban Development (HUD) announced settlements with six major U.S. homebuilders over RESPA violations. According to HUD, complex business arrangements through the company’s captive title reinsurance company shielded payments for business referrals.

Combined, the $1.4 million settlement payments in these six agreements with other settlements involving captive title reinsurance bring the total amount of negotiated settlements in the past year and a half to $4.95 million. The recent companies include:

• $466,000 settlement with Pulte Homes Inc., and its captive title reinsurance company Marquette Title Insurance Co.

• $456,000 settlement with KB Home and its captive title reinsurance company Westview Co.

• $261,000 settlement with Beazer Homes USA Inc. and its captive title reinsurance company Security Title Insurance Co.

• $66,000 settlement with Meritage Homes Corp., Meritage Homes of California Inc., Meritage Homes of Nevada Inc., Meritage Homes of Arizona Inc., and their captive title reinsurance company Meritage Paseo Crossing LLC

• $84,000 settlement with The Ryland Group Inc. and its captive title reinsurance company Cornerstone Title Insurance Co.

• $52,000 settlement with Technical Olympic USA Inc. (TOUSA Homes) and its captive title reinsurance company Universal Land Title Inc

“There’s no legitimate purpose for captive title reinsurance when it comes to single-family homes,” says Brian D. Montgomery, HUD Assistant Secretary for Housing and Federal Housing Commissioner. “It’s increasingly clear to us that these complicated business arrangements serve no other purpose than to hide referral fees and kickbacks which are expressly forbidden by law.”

Captive title reinsurance is a practice where a title insurance company transfers a portion of the risk and title premium to a company owned by the builder, lender or real estate broker referring business to the title insurance company. In HUD’s view, any captive title reinsurance arrangements in which payments are not bona fide and exceed the value of the reinsurance are a violation of RESPA.

There is particular concern when these arrangements involve an entity that is in a position to refer business to the primary title insurer. According to HUD, there is also strong evidence these arrangements are designed to generate referral fees when there is a history of few or no claims paid by the reinsurance company. The companies cooperated with HUD in reaching these settlements. In addition to the settlement payments, the companies agreed not to enter into any new captive title arrangements and to cease writing new captive title reinsurance business.

This is the third round of settlements at the federal level involving the recipients of payments made by title insurance companies to captive companies for reinsurance. The settlements come in the wake of two rounds of settlements that HUD reached with five major homebuilders and one lender for a total of $3.55 million.

The Real Estate Settlement Procedures Act was enacted in 1974 to provide consumers advance disclosures of settlement charges and to prohibit illegal kickbacks and excessive fees in the home buying process. Section 8 of RESPA prohibits a person from giving or accepting anything of value in exchange for the referral of settlement service business.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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Florida House Pushes For Stronger Property Tax Cuts

TALLAHASSEE, Fla. – Oct. 22, 2007 – On Saturday, Florida’s House of Representatives released its updated property tax reform plan, which includes a number of initiatives favored by Florida Realtors.

House leaders now hope to build a bipartisan consensus to show the Senate that they’re serious about drastically cutting state property taxes. If Democrats and Republicans pass the measure with something close to a majority, they reason, the Senate would have to consider the plan.

“If we come out with a product in the House that’s 118-2 or 115-5, it sends a message that, look, this is pretty good reform that we’re united behind,” says Rep. Jack Seiler, D-Wilton Manors. “We actually deliver the same in tax cuts [as the Senate’s plan], but we deliver it more efficiently.”

In addition to portability – which the governor, Senate and House already advocate – the updated House proposal includes a 5 percent assessment cap on commercial and non-homestead property. The cap applies to properties, so a change of ownership would not change those taxes under a new owner, giving non-homestead property owners a degree of stability and predictability.

The House also advocates a new homestead exemption. Instead of doubling the current $25,000 exemption, the plan would guarantee a minimum Save Our Homes exemption of 40 percent of a county’s median home price. House leaders believe this will provide relief to not only new buyers but also those who have purchased in recent years.

Issues being proposed in the House plan include:

• Homestead property owners would pay tax based on their existing Save Our Homes value or current value minus 40 percent of their county’s current median home price, whichever is less.

• 5 percent cap on commercial and non-homestead property taxes

• Under portability, homeowners may transfer Save Our Homes benefits to a new homestead anywhere in Florida within two years of leaving their former homestead.

• Tangible personal property exemption of $25,000

• Limits the authority of local governments to increase property taxes

• Provides limitations on the assessed value of properties used for affordable housing

• 5 percent assessment growth limitation for all non-homestead properties

• More flexibility for the Legislature to limit assessments for working waterfront properties

• Election of all county property appraisers

FAR has a downloadable chart comparing the recent House proposal to Senate positions here.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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PricewaterhouseCoopers: ‘24-Hour Cities’ Top Markets To Watch

NEW YORK – Oct. 19, 2007 – More than 600 of the nation’s leading real estate experts expect the sizzling commercial real estate market in the U.S. to slow in 2008, with a healthy correction that will likely bypass long-term investors but penalize late-to-the-game speculators and overleveraged buyers, according to the “Emerging Trends in Real Estate 2008” report, released this week by PricewaterhouseCoopers LLP and the Urban Land Institute (ULI).

According to the report, real estate investors and developers believe uncertainty will characterize 2008. They expect capitalization rates to rise and risk to be repriced, with the harshest effects being felt by those who have relied on debt strategies. More than three-quarters (78 percent) anticipate more stringent underwriting standards in the year ahead. Yet, despite this apprehension, respondents expect most real estate investments to outperform both the U.S. stock and bond returns in the year ahead, and are counting on ample capital sources to cushion the property markets.

Respondents believe the correction in the commercial market will not be as severe as in the residential real estate market. Commercial real estate supply and demand is relatively strong, development is in check and the fundamentals are still healthy, according to respondents.

“The commercial real estate market has been going full throttle for several years with easy money and low interest rates that drove some sectors into questionable lending practices and highly leveraged spending,” said Tim Conlon, a partner in PricewaterhouseCoopers. “But the run went on too long for some participants. Those who went beyond moderation will likely experience some headaches in 2008.

“Depending on what happens with the U.S. economy as a whole, it could be painful for some, but overall, a correction could be good for the industry, keeping supply and demand in balance, curbing overdevelopment and flushing out low-quality investors. By the same token, there are still investment opportunities and there is still a good deal of demand from investors.”

Richard Rosan, president, ULI Worldwide, said the report points to the value of sustainable building, which results in development that remains in demand despite market cycles. “We are seeing an increasing emphasis on building efficiently to accommodate growth -- on pedestrian-friendly, mixed-use development, communities that provide housing near jobs, and development connected to transit,” Rosan said. “What is selling now and will continue to sell are projects that cater to strong consumer desire for convenience. Those are the best bets.”

He noted that the issue of climate change has elevated the importance of sustainable land use, giving such development a competitive advantage that will increase as the market improves. “It’s clear that building in a way to cut auto dependency is a key part of the solution to climate change,” Rosan said. “This is the type of development with long-term value.”

Markets to Watch

The top markets to watch, according to the report, are those that have positioned themselves as 24-hour cities with a global pathway to international markets. They all have a major international airport and/or shipping port, export-import hubs, an educated workforce and walkable residential neighborhoods. They have made a concerted effort to revitalize downtown areas or nearby urban suburbs that have made them magnets for corporate headquarters, business elites, the best and the brightest of the workforce as well as the largest share of investor dollars.

The most successful investment opportunities are markets on the coast, reinforcing the real estate truism that its all about location, location, location, the report says. But as many interior cities such as Denver have demonstrated, it is possible to transform a city into a 24-hour global pathway city with master planning around infrastructure, transportation and economic development.

The report ranks New York City as “the hottest commercial real estate market in the country” and the “ultimate American 24-hour city.” “Vacancies in New York are in the mid-single digits, rents have skyrocketed and pricing is at all-time highs,” states the report. And while the market may have peaked recently, the weak dollar actually makes the city’s monster prices look cheap to foreign investors who are pouring and parking money into Manhattan real estate, the report says.

According to surveyed real estate experts, not only is the New York market hot, but the entire commercial real estate industry has also acquired a New York state of mind as Wall Street and real estate have converged. In part because of its sheer size, New York now sets the tone for the entire U.S. commercial real estate market and influences investor psychology as the bellwether for the rest of the country. According to the report, real estate used to be characterized by local buyers and local lenders, and is now dominated by national financial institutions and landlords, many of whom are located in New York.

Seattle is also a standout market for investors, receiving top or near top buy ratings for all property sectors. Growth controls and geographic barriers have led to concentrated high-density, mixed-use development, which has drawn residents to new downtown neighborhoods, making Seattle a 24-hour city on Asian commerce routes. With so many “corporate heavyweights” headquartered in or near Seattle, it has a highly diversified economy. Seattle is also the highest-rated metro area for home building.

Other top markets identified in the report demonstrate a clear bicoastal focus, with Boston and Washington, D.C. joining New York as the East Coasts most watched markets. On the West Coast, Seattle, San Francisco, Los Angeles and San Diego top the list. Denver is the lone non-coastal metropolitan area among the top markets to watch.

Washington D.C. The nations capital continues to be one of the most watched commercial real estate markets, because the government never stops and the ever-churning Washington machine provides a cushion for real estate owners against abrupt downturns.

Los Angeles. According to the report, southern California is the crest of the housing market slowdown as high prices have driven some business and residents to seek shelter in lower cost states. While the Orange County office market has softened, the office market in West LA has never been better. LA/Long Beach remains the nations top port, but transportation routes are clogged, creating a hindrance to trade.

San Francisco. This highly livable city’s market has been propelled by resurgent technology businesses. View space is once again commanding over $100 per square foot, even as supply creeps upward.

Boston. As the greater Boston market rebounds from the tech wreck of the early 2000s, it is seeing resurgence in its offices. New industries, such as professional services firms and biotech companies, are beginning to recycle space left vacant by corporate headquarter departures in the recent past. But questions remain about the depth of Boston’s tenant population, causing investors to keep a close and wary eye on the market.

San Diego. While one of the most attractive places to live, San Diego is a leading indicator for a market correction. Office turnover and out-migration of prime business centers to Del Mar and Oceanside have left San Diego’s downtown looking for new growth opportunities.

Denver. The only non-coastal city in the top tier, Denver has retooled its downtown to create an urban suburb, a hip and exciting urban core in the midst of a sprawling suburban area, connected to downtown via a light-rail transit.

While investors typically back away from smaller markets during a correction, markets to watch in this segment include: San Jose, Calif.; Honolulu, Hawaii; Austin, Texas; Raleigh-Durham and Charlotte, N.C.; Portland, Ore.; Sacramento, Calif.; Las Vegas, N.V.; Orlando and Tampa, Fla; Salt Lake City, Utah, Jacksonville, Fla.; Nashville, Tenn.; and Minneapolis, Minn.

Among property sectors, income-generating industrial and apartment sectors remain favored investment categories, according to the survey. Office space in dominant downtowns should perform better than in suburban-oriented markets. As tapped-out consumers restrain their spending, ratings may fall most dramatically for housing-related categories, with condominiums landing in the basement.

For the first time, the report also provides an outlook for Canadian real estate. Canada benefits from a more conservative investment environment than the United States, avoiding the consequences of lax underwriting. In Canada, institution-dominated markets appear to be avoiding “transaction mania,” but real estate values have reached record highs and a strong economy has accelerated tenant demand for space. Interviewees remain positive about sidestepping any serious impacts of a possible U.S. correction. Western provinces showcase the strongest growth trends and lowest vacancies in North America. Calgary and Edmonton are the top choices for investors. All property sectors share positive prospects, especially industrial and retail. Housing prices skyrocket toward new highs without overdoing mortgage financing.

The Emerging Trends report reflects interviews with and surveys of more than 600 of the industry’s leading real estate experts, including investors, developers, property company representatives, lenders, brokers and consultants. A copy is available at www.uli.org or www.pwc.com/imre.

© 2007 FLORIDA ASSOCIATION OF REALTORS

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On The Move

According to data just released by the U.S. Census Bureau, 39.8 million U.S. residents moved between 2005 and 2006. The moving rate remained statistically unchanged from 2005 at 14 percent. Nearly half of the reasons given for moving (18.4 million) were housing-related, such as wanting a bigger or smaller house. The West had the highest moving rate (16 percent), followed by the South (15 percent), the Midwest (13 percent) and the Northeast (10 percent). Other findings include: In 2006, nearly one-third (30 percent) of all people living in renter-occupied housing units lived elsewhere a year earlier. The moving rate for people living in owner-occupied housing units was 7 percent. Also, most movers stayed within the same county (62 percent), while 20 percent moved from a different county within the same state; 14 percent moved from a different state and 3 percent moved from abroad. To see the census data, go to: http://www.census.gov/Press-Release/www/releases/archives/mobility_of_the_population/010755.html

FAR Issues Call-to-Action For Property Tax Reform

TALLAHASSEE, Fla. – Oct. 17, 2007 – A Florida House committee approved significant property tax relief yesterday afternoon that creates a 3 percent assessment cap on non-homestead and commercial properties that the state currently offers only to homestead properties.

But senators, many unconvinced, now will consider the House’s revisions. To move the initiative forward, the Florida Association of Realtors® (FAR) issued a Call-to-Action and asks all Realtors to take a minute to contact their senators at: http://votervoice.net/target.aspx?id=flar:18849791

“FAR President Nancy Riley and our Tallahassee lobbying team met with House leaders late into the evening (Monday) night, and we have continued to make the case for property tax relief that would be felt by all property owners in Florida, not just homestead owners,” says John Sebree, FAR vice president of public policy. “(Yesterday) we met with numerous other elected officials, including the governor, lieutenant governor, and House and Senate leaders.” FAR’s meetings with lawmakers continued today.

The 3 percent yearly cap would also end Florida’s current property tax system that readjusts values when a property is purchased, meaning a new owner of commercial or non-homestead property would no longer be hit with a large and unexpected tax increase upon ownership since the assessment cap remains in place forever. (Homestead property would still be readjusted upon sale – property tax portability would offset that difference.)

The House bill also calls for a penny increase in Florida’s sales tax to offset the decrease in funding from property taxes. The one-penny sales tax would “buy-out” the portion of the property tax for the “required local effort” (the school portion of everyone's property taxes). The money raised by the sales tax increase would be earmarked for education. House estimates call for a 15 percent across the board property tax reduction if this swap measure is included in the final package.

The House and Senate begin work today on compromise legislation, and FAR leaders don’t want important protections created in the House bill to be eliminated during the process.

“Our focus now turns to the Senate,” says Sebree. “We need to apply pressure to Senators to accept these major additions to the current legislation being considered in the special session.

Make your voice heard: http://votervoice.net/target.aspx?id=flar:18849791

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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Florida’s CFO Joins National Coalition Calling For Mortgage Changes

TALLAHASSEE, Fla. – Oct. 17, 2007 – With the mortgage crisis continuing to affect the country and the financial markets, Florida Chief Financial Officer Alex Sink has joined a coalition of national elected officials and consumer organizations urging mortgage companies and lenders to adhere to basic principles of transparency and fairness.

By joining the coalition, Sink is calling on companies to follow the coalition’s “Mortgage Protection Principles” in order to strengthen their business operations going forward and to prevent yet another mortgage meltdown.

“As Florida’s chief financial officer, I am highly concerned about our state’s economy and the financial health of our consumers,” said CFO Sink, who oversees the Department of Financial Services. “We are asking all financial institutions to help consumers avoid foreclosure, to be more diligent in their efforts to increase disclosure and to assist homeowners understand more about the financial decisions they make.”

North Carolina Treasurer Richard Moore, who leads the coalition, said, “As investors, as leaders and as citizens, we are deeply concerned about the mortgage crisis that has hit our country on so many fronts. We call on mortgage companies and lenders of all sizes to abide by these basic principles of fairness and transparency. We have the holdings, the clout and the conviction to encourage positive behavior, and we hope that all companies will adopt these principles.”

The group’s Mortgage Protection Principles include:

• Matching borrowers with the most appropriate, fair and affordable loans for which they qualify
• Verifying and documenting the borrower’s ability to repay the loan for all subprime loans
• Ensuring that subprime loans with an adjustable rate feature are affordable, rather than basing a borrower’s loan qualification on a teaser rate
• Not charging prepayment fees or penalties on any subprime loans
• Not offering incentives for employees or brokers to place borrowers into higher cost loans than those for which they qualify
• Clearly disclosing all expected broker compensation, from lenders or elsewhere, for any loan options presented to the borrower
• Providing borrowers with a fixed-rate option whenever presenting adjustable rate products
• Making the same services available to all similarly-situated borrowers and ensuring that they do not discriminate on any prohibited basis
• Conducting criminal background checks to ensure that mortgage brokers are of high moral character

The coalition also includes Kentucky Treasurer Jonathan Miller, New York State Comptroller Thomas DiNapoli, the leaders of the American Federation of State, County and Municipal Employees (AFSCME) and UNITE HERE and several other financial organizations.

The mortgage crisis has impacted investors, consumers and homeowners. Many subprime mortgages have been resetting, meaning that a low introductory rate resets to the market rate, and leaving many Americans with higher rates that they are unable to afford. In August and September, $32.6 billion worth of mortgages reset, and the high volume of resets is expected to continue through next year. The August 2007 U.S. Foreclosure Market Report shows a total of 243,947 foreclosure filings nationwide for the month, up 36 percent from the previous month and up 115 percent from August 2006. In addition, the report showed a foreclosure rate of one filing for every 510 households – the highest figure ever noted in the report.

Since the end of last year, more than 80 mortgage lenders, mainly subprime, have closed their doors or suspended new loan activity. Some of the largest, like New Century Financial and American Home Mortgage, filed for bankruptcy and Countrywide Financial shares have lost almost 60 percent of their value. The world’s largest bank, Citigroup, announced just yesterday that its earnings were off by 57 percent for the third quarter – due in large part to subprime impacts.

© FLORIDA ASSOCIATION OF REALTORS

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Home Buyers Confused By Market Reports

ORLANDO, Fla. – Oct. 15, 2007 – Are potential buyers worried about real estate or just overwhelmingly confused? Last week, two studies came out. One put Orlando in the top 10 nationwide for a great time to buy, while the second listed Orlando-Kissimmee as one of 11 nationwide markets with a greater than a 50/50 risk for price declines.

Time to buy

Forbes magazine examined current home sales patterns and sales projects in the country’s 40 largest real estate markets to identify the most attractive markets. Based on models that estimated 2008 housing inventory, sales rates and turnover, the magazine compiled a list of markets that are experiencing price declines, but where buying looks attractive because there is likely to be an increase in sales in the near future.

Only one Florida city made the list, but Orlando ranked at No. 8, noting a recent 2.4 percent price decline since 2006. However, authors expect that decline to turn around fairly quickly.

Not time to buy

On the other hand, PMI Mortgage Insurance Co. noted in its second-quarter U.S. Market Risk Index that Orlando was one of 11 metropolitan statistical areas (MSAs) with a greater than 50 percent chance of price declines over the next two years. The Risk Index – which considers elements such as home prices, market volatility, affordability and employment – creates scores, with any score greater than 500 considered “at risk” for an increase.

Orlando-Kissimmee scored 506 – slightly less than two other Florida MSAs on the list, West Palm Beach-Boca Raton-Boynton Beach with 532; and Fort Lauderdale-Pompano Beach-Deerfield Beach with 507.

Even the Risk Index had some good news for Florida cities, however. The second quarter saw two MSAs drop off the list, meaning their chance for a price decline over the next two years went from greater than 50 percent to below 50 percent. They include Miami-Miami Beach-Kendall with 466, and Tampa-St. Petersburg-Clearwater with 462.

Always a good time to buy

To understand slow real estate markets better, PMI also studied homebuyers who purchased during down cycles over the past 25 years to see the long-term effects. But they found that it’s never really a bad time to buy. PMI economists assumed a 20 percent downpayment and found that even during the worst times, buyers had a positive return on their home investment over 10 years.

“Homeownership is a good way to build long-term wealth” and homebuyers “shouldn’t panic when we are going through a phase like that,” says Mark Milner, PMI’s chief risk officer.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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Survey Says: Falling U.S. Dollar Is No. 1 Investor Worry

JUPITER, Fla. – Oct. 15, 2007 – The falling U.S. dollar is the number one worry of U.S. investors, according to an investor survey conducted by Weiss Research’s MoneyandMarkets.com.

Among more than 2,325 investors voluntarily responding to the recent poll, 43 percent ranked the dollar decline as their single most serious concern. The fear of a recession or depression was a distant second, cited as a primary concern by only 20.8 percent of the respondents. Ranked third and fourth were terrorist threats, wars or future geopolitical crises (10.5 percent) and inflation (10.2 percent).

Respondents were asked, “What is the single most serious concern facing investors today?”

The summary of all responses included: the declining US dollar, 43.1 percent; a recession or depression, 20.8 percent; terrorist threats, wars or future geopolitical crises, 10.4 percent; inflation; 10.0 percent; the mortgage and housing crisis, 8.1 percent; and a stock market crash or bear market, 7.6 percent.

“The dollar has been declining steadily against most major currencies for over five years, with the Dollar Index recently falling to its lowest level of all time,” said Martin D. Weiss, Ph.D., president of Weiss Research. “So it should come as no surprise that investors are worried about it. Many appear to recognize the long-term consequences of a falling dollar on stocks, bonds, and real estate as well as the economic impact on our country as a whole.”

For protection, Weiss recommends investors consider strong foreign currencies, natural resources and other assets that go up when the dollar falls. “Years ago,” Weiss said, “it was difficult for average investors to buy foreign currencies or natural resources. Now, however, they are readily available through exchange-traded funds and other easy-to-trade instruments.”

© 2007 FLORIDA ASSOCIATION OF REALTORS

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Improvement In Mortgage Market Bodes Well For Housing In 2008

WASHINGTON – Oct. 11, 2007 – Conditions in the mortgage market are improving for consumers, which should help to release some pent-up demand in early 2008, according to the latest forecast by the National Association of Realtors® (NAR).

Lawrence Yun, NAR senior economist, notes that widening credit availability will help turn around home sales. “Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch, and FHA loans are replacing subprime mortgages,” he says.

Yun says it’s important to place the current housing market in perspective, and that 2007 will be the fifth highest year on record for existing-home sales. “Although sales are off from an unsustainable peak in 2005, there is a historically high level of home sales taking place this year – a lot of people are, in fact, buying homes,” he says. “One out of 16 American households is buying a home this year. The speculative excesses have been removed from the market and home sales are returning to fundamentally healthy levels, while prices remain near record highs, reflecting favorable mortgage rates and positive job gains.”

He emphasizes all real estate is local with naturally large variations within a given area. “Markets like Austin, Salt Lake City and Raleigh have been outperforming recently and will continue to do well next year,” Yun says. “Other areas like Denver and Wichita will likely move up in the price growth rankings due to very positive local economic developments.”

Existing-home sales are expected to total 5.78 million in 2007 and then rise to 6.12 million next year, in contrast with 6.48 million in 2006. New-home sales are forecast at 804,000 this year and 752,000 in 2008, down from 1.05 million in 2006; a recovery for new homes will be delayed until next spring.

“A cutback in housing construction is a positive sign for the market because it will help lower inventory and firm up home prices,” Yun says. Housing starts, including multifamily units, are likely to total 1.37 million in 2007 and 1.24 million next year, down from 1.80 million in 2006.

NAR President Pat V. Combs says, “Housing is still a good long-term investment, and we’ll be seeing a broad, modest improvement in home prices in 2008. With widely varying conditions, the best advice for consumers is to consult a Realtor in their area to learn about local market conditions because supply and demand can change from one neighborhood to the next.”

Existing-home prices will probably slip 1.3 percent to a median of $219,000 in 2007 before rising 1.3 percent next year to $221,800. The median new-home price should drop 2.1 percent to $241,400 this year, and then increase 1.0 percent in 2008 to $243,900.

The 30-year fixed-rate mortgage is expected to average 6.4 percent for the next two quarters and then edge up to the 6.6 percent range in the second half 2008. Additional cuts expected in the Fed funds rate will help to keep mortgage interest rates historically favorable.

Growth in the U.S. gross domestic product (GDP) is estimated at 2.0 percent this year, below the 2.9 percent growth rate in 2006; GDP is likely to grow 2.7 percent next year.

The unemployment rate is forecast to average 4.6 percent this year, unchanged from 2006. Inflation, as measured by the Consumer Price Index, is expected to be 2.8 percent in 2007, compared with 3.2 percent last year. Inflation-adjusted disposable personal income will probably increase 3.6 percent in 2007, up from 3.1 percent last year.

© 2007 FLORIDA ASSOCIATION OF REALTORS

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HUD Awards $18 million To Fight Housing Discrimination

WASHINGTON – Oct. 11, 2007 – The Department of Housing and Urban Development (HUD) awarded 88 grants totaling $17.1 million to recipients in 37 states and the District of Columbia to help fight housing discrimination.

In addition, HUD awarded $1 million to New America Media, a division of Pacific News Service, to develop the department’s first coordinated national media campaign to educate the public about discriminatory lending through television, radio and print advertisements.

“Last year there were a record 10,328 housing discrimination complaints filed with HUD and its state and local partners,” says Kim Kendrick, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “These grants will allow us to continue with efforts to educate the public and the housing industry about their rights and responsibilities under the Fair Housing Act. The national media campaign that we will develop is also very important. Without the campaign, we believe that the consequences of discriminatory lending will not only continue, but may escalate.”

The grants, funded through HUD’s Fair Housing Initiatives Program, will be used to investigate allegations of housing discrimination, educate the public and the housing industry about their rights and responsibilities under the Fair Housing Act, and work to promote equal housing opportunities.

The grants were awarded under one of two initiatives:

• Private Enforcement Initiative grants (PEI) – HUD awarded $14 million to help groups investigate alleged housing discrimination, and enforce the Fair Housing Act and state and local laws that are substantially equivalent to the Act.

• Education and Outreach Initiative grants (EOI) – HUD awarded $3.1 million to groups that educate the public and housing providers about their rights and obligations under federal, state, and local fair housing laws.

A list of all grant recipients and summaries about their programs are listed at www.hud.gov.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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HUD Releases $44.1 Million For Homebuyer Counseling

WASHINGTON – Oct. 10, 2007 – Approximately 700,000 families will get help through more than $44 million in housing counseling and counseling training grants announced by the Department of Housing and Urban Development (HUD), with 20 agencies in Florida sharing $765,000.

Homebuyer counseling can help families become first-time homeowners and qualify for a mortgage. Renters and homeless individuals and families will also benefit from the counseling offered by the grants. The grants were awarded to 19 national and regional organizations and nearly 370 state and local housing counseling agencies.

National and regional agencies distribute much of HUD’s housing counseling grant funding to community-based grassroots organizations that provide advice and guidance to low- and moderate-income families seeking to improve their housing conditions.

More information about HUD and its programs is available at www.hud.gov and espanol.hud.gov.

Florida programs receiving money include:

• Apopka – Homes In Partnership Inc., $30,846.23
• Bradenton – Manatee Opportunity Council Inc., $42,000.00
• Cooper City – Haven Economic Development Inc., $34,461.63
• Daytona Beach – Central Florida Community Development Corp., $34,461.63
• Daytona Beach – Mid-Florida Housing Partnership Inc., $45,307.86
• Jacksonville – Jacksonville Area Legal Aid Inc., $34,461.63
• Miami – Miami-Dade Affordable Housing Foundation Inc., $20,000.00
• Ocala – Ocala Housing Authority, $40,000.00
• Opa-Locka – Opa-Locka Community Development Corp., $20,000.00
• Pensacola – CCCS Of West Florida – Main Office, $45,307.86
• Port Charlotte – The Housing Corp., $23,615.41
• Riviera Beach – Housing Partnership Inc., $27,230.82
• Rockledge – Family Counseling Center of Brevard Inc., $45,307.86
• Sanford – The Center For Affordable Housing Inc., $41,692.45
• Sarasota – Goodwill Industries Manasota Inc., $41,692.45
• St. Petersburg – St. Petersburg Neighborhood Housing Services Inc., $48,923.27
• Tallahassee – Tallahassee Lenders Consortium Inc., $52,000.00
• Tallahassee – Tallahassee Urban League Inc., $52,538.68
• Tampa – Tampa Housing Authority, $34,461.63
• West Palm Beach – Credit Card Management Services Inc., $41,692.45

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Growth, Stability And Opportunity In The Sunshine State

ORLANDO, Fla. – Oct. 4, 2007 –The Milken Institute/Greenstreet Partners 2007 Best Performing Cities Index – 200 Largest Metros, along with its complementary study of the best 200 small metro areas, ranks cities on their ability to create and sustain jobs, which translates into employment opportunities and salary growth.

For the third consecutive year, Florida metropolitan areas scored high on the 200 Largest Metros index, taking three of the top six spots – including this year’s top-ranked metro, Ocala.

The Orlando-Kissimmee MSA ranked No. 5, followed by Naples-Marco Island at No. 6. All together, 16 metro areas in Florida placed in the top 100 spots nationally in the largest metros index. In the complementary small metro area index, two areas in the Panhandle (Panama City-Lynn Haven and Fort Walton Beach-Crestview-Destin) ranked in the Top 20 for Best Performing Cities Index.

The index measures both long-term (five years) and short-term (one year) projections for employment and salary growth. Researchers attribute Ocala’s strong showing to job growth, averaging 5.8 percent during the past two years, and a robust housing market.

According to the research, Ocala, as well as the Orlando-Kissimmee and Naples-Marco Island metro areas in Florida, scored well in the index because of their tourism and tech-based manufacturing.

“There are dynamic forces at play at the national level that are being reflected at the local metro level,” says Ross DeVol, director of regional economics at the Milken Institute. “One of the key distinguishing characteristics of successful places over the long-term is the entrepreneurial strength of its residents. Entrepreneurs replenish the jobs lost in declining industries and firms,” DeVol said.

Here are the Top 10 performers (with last year’s ranking in parentheses) of the 200 largest metros:

1. Ocala, FL (13)
2. Wilmington, NC (59)
3. Riverside-San Bernardino-Ontario, CA (10)
4. Phoenix-Mesa-Scottsdale, AZ (15)
5. Orlando-Kissimmee, FL (6)
6. Naples-Marco Island, FL (3)
7. McAllen-Edinburg-Mission, TX (7)
8. Provo-Orem, UT (23)
9. Las Vegas-Paradise, NV (11)
10. Raleigh-Cary, NC (45)

The full study is found at: http://bestcities.milkeninstitute.org

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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Realtors Encourage Senate To Expand Flood Insurance Program

WASHINGTON – Oct. 3, 2007 – Speaking before the Senate Banking Committee yesterday, the National Association of Realtors® (NAR) expressed support for reforming and expanding the National Flood Insurance Program. The NFIP helps protect homeowners, renters and commercial property owners from losses sustained from flooding.

Since its creation, the NFIP has helped reduce the escalating costs of repairing flood-related damage to homes, buildings and contents in participating communities. “A strong real estate market is the linchpin of a healthy economy,” said NAR President Pat V. Combs. “To ensure that real estate continues to be a good long-term investment and maintain vitality in the residential and commercial markets, certain safeguards must be in place, including federally backed flood insurance made available through the NFIP.”

The NFIP is a unique partnership between local, state and federal governments. It allows participating communities to purchase insurance as protection against flood losses in exchange for state and community floodplain management regulations that would reduce future flood damage. In exchange, the NFIP makes federally backed flood insurance available to homeowners, renters and business owners in these communities. More than 20,000 communities currently are participating in the NFIP.

Testifying on NAR’s behalf, 2006 California Association of Realtors® (CAR) President Vince Malta said, “The NFIP is a win-win in that it promotes responsibility by homeowners, the community and the government. Compliance with NFIP building standards resulted in nearly 80 percent less damage annually. In addition, the cost of flood damage was reduced by nearly $1 billion because communities are implementing sound floodplain management requirements and property owners are purchasing flood insurance.”

NAR supports reforms that protect the integrity of NFIP by fully funding existing and future obligations to policyholders, increasing awareness of flood risks through consumer education and outreach, and ensuring that the 100-year floodplain maps are updated quickly. NAR also believes that any NFIP reform measure should include mitigation measures for severe repetitive loss properties.

NAR encouraged Congress to strike a balance between ensuring the long-term fiscal viability of the NFIP while avoiding changes that may result in market inequities and housing affordability problems, especially for low- and moderate-income homeowners and renters.

Before taking any future action to eliminate the existing subsidy, Congress must thoroughly analyze the impacts of eliminating subsidies on homeowners, renters and local economies. “Eliminating subsidies would result in higher flood premiums, increase the cost of property ownership and rents in these areas and could lead to further foreclosures and reduced property values,” said Malta.

“It is critical that flood insurance remain accessible for all individuals who own or rent property in a floodplain. We urge the Senate to move forward to enact a comprehensive policy that protects not only homeowners, but also all taxpayers, because proactive planning resulting cost savings. We look forward to working with Congress in implementing this important legislation,” Malta said.

© 2007 FLORIDA ASSOCIATION OF REALTORS

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Mortgage Problems Continue To Hamper Pending Home Sales

WASHINGTON – Oct. 3, 2007 – Pending sales of existing-homes activity will be dampened near-term as mortgage disruptions continue to impact the housing market, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a forward-looking indicator, fell 6.5 percent to a reading of 85.5 from an upwardly revised 91.4 in July, based on contracts signed in August. It was 21.5 percent below the August 2006 index of 108.9.

Lawrence Yun, NAR senior economist, says the mortgage market impact is quantifiable. “Fewer contracts were being written because of mortgage availability issues, and a separate internal survey of our members shows more than 10 percent of sales contracts fell through at the last moment in August, primarily the result of canceled loan commitments,” he says. “The volume of activity we’re seeing today is below sustainable market fundamentals because some creditworthy people are trying to buy homes but can’t because of the credit crunch.

“The impact was greater in high-cost markets that are more dependent on jumbo mortgages. In some areas, as much as 30 percent of signed contracts were falling through in August when the credit crunch problem peaked,” Yun says. “The problem has since become less severe, though jumbo loan rates are still higher than they would be under normal conditions. Therefore, sales activity in late fall will better reflect market fundamentals.”

The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

Annual changes in the index are more closely related to actual market performance than are month-to-month comparisons. As the relatively new index matures and seasonal adjustment factors are refined, the month-to-month comparisons will become more meaningful.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

The PHSI in the West was down 2.7 percent in August to 80.3 and was 27.1 percent below a year ago. In the Midwest, the index fell 2.9 percent from July to 78.1 and is 18.0 percent lower than August 2006. The index in the Northeast fell 8.3 percent in August to 77.3 and was 18.3 percent below a year ago. In the South, the index dropped 9.5 percent in August to 97.8 and was 21.3 percent below August 2006.

© 2007 FLORIDA ASSOCIATION OF REALTORS

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U.S. House Panel OKs Debt Forgiveness In Foreclosures

WASHINGTON – Sept. 27, 2007 – Foreclosed homeowners won’t have to pay income tax on debt forgiven by a lender under a bill that passed a U.S. House panel yesterday. Should the bill become law, the bill would also extend the tax deduction for PMI and change slightly the rules for shielding $250,000 in capital gains from the sale of a second home.

H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007, now goes to the full House for a vote.

Debt forgiveness in foreclosures

Currently, homeowners who lose their homes to foreclosure generally have some mortgage debt forgiven by the lender, but the IRS considers that forgiven debt taxable income, charging extra tax to people who just lost their home. H.R. 3648 would provide a permanent exclusion for any discharge of indebtedness (on or after Jan. 1, 2007) that is secured by a principal residence and incurred in the “acquisition, construction or substantial improvement of the principal residence.”

Long-term extension of the deduction for private mortgage insurance

The bill extends the tax deduction for private mortgage insurance for seven years – through 2014.

Gain on the sale of a principal residence

Taxpayers may exclude up to $250,000 ($500,000 if married filing a joint return) of the gain realized on the sale or exchange of a principal residence. H.R. 3648, however, changes slightly the definition of principle residence when it’s applied to second homes. Under current law, a home qualifies for the exclusion if it’s a taxpayer’s principal residence for at least two of the five years preceding a sale ending on the sale, even if the home was initially purchased as a second home.

Under the bill, the timeline changes. A taxpayer may only use the deduction on a home sale after a home becomes his principal residence. Time spent living in the home does not count toward the two-year minimum until the owner officially declares it his primary place of residence.

Qualification changes for cooperative housing corporations

Under current law, a cooperative housing corporation must follow some specific rules, including a requirement that 80 percent or more of the cooperative housing corporation is earned from the corporation’s tenant-stockholders. H.R. 3648 expands that requirement by providing two alternatives to this rule – one based on square footage and another based on cooperative expenditures.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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FAR Backs Tax Amendment

TALLAHASSEE, Fla. – Sept. 26, 2007 – For the leadership of the Florida Association of Realtors® (FAR) and Tallahassee staff, it’s steady as she goes in the fight for a property tax amendment on the January ballot – but there could be rough waters ahead.

Many unanswered questions remain, but FAR sent a memo to affected committees and local Realtor associations reaffirming its commitment to “finding relief, from high taxes” and the “lock-in effect” of the current property tax laws “as soon as possible.” Since the January amendment offers the quickest route to change – and a potential boost to state home sales – FAR’s primary commitment remains quick passage.

One question was answered this morning: Secretary of State Kurt Browning announced that he will immediately appeal the circuit court decision, by Circuit Judge Charles A. Francis of Tallahassee, with the 1st District Court of Appeal. The case will likely go to the Florida Supreme Court for a final decision.

One question not answered, however: Will the Florida Legislature consider a change in the ballot wording during its upcoming special session on Oct. 3? Gov. Charlie Crist, who is strongly committed to the January amendment, can follow through with the appeal, but he cannot unilaterally force the Florida Legislature to revisit the amendment. For that, he also needs a buy-in from Senate President Ken Pruitt (R-Port St. Lucie) and House Speaker Marco Rubio (R-West Miami) because they supervise the special session.

Senate President Ken Pruitt earlier indicated a desire to appeal the lower court’s ruling, leaving the amendment language as written and relying on a favorable judgment from a higher court. “I believe the best course of action for the Senate and for Florida taxpayers is to vigorously defend our work product,” Pruitt said in a memo to other senators. “The ruling yesterday represents the first step in the judicial process; we will appeal this decision.”

Rubio favors the appeal but is willing to reconsider the amendment language during the special session. “Burdened by taxes that they cannot afford to pay, Floridians have waited long enough for relief,” Rubio said in a release. “We must do everything in our power to preserve the Jan. 29 special election, even if that means addressing the property tax issue in the upcoming special session.”

While FAR leaders “are fairly confident in the language” of the current amendment, it presents a problem if the court ultimately rules against it. According to Florida’s secretary of state, amendments must be presented by Oct. 28, and it’s unlikely that a court ruling against the amendment would give lawmakers enough time to get an adjusted version onto the January ballot if they wait. Under that scenario, property tax reform could not be on the ballot until the November 2008 election, postponing any significant relief until at least 2009.

For that reason, FAR is in the process of contacting the Senate President and other Florida Senators to “express our concern about not having relief before 2009.” Members are encouraged to prepare for possible calls-to-action about property tax reform and even other issues under discussion during the special session, such as state commitments to affordable housing, possible cuts in the DBPR budget and tax reform proposals. FAR also continues to update local Realtor associations/boards, other business groups, and the public at large about the benefits of Amendment 1.

Stay updated on Amendment 1 issues on floridarealtors.org’s home page under “What’s New.”

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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Florida’s Consumer Confidence Rises Slightly But Expected To Dip Again

GAINESVILLE, Fla. – Sept. 26, 2007 – Florida’s consumer confidence inched up one point to 79 in September, a new University of Florida study finds, though higher gas prices and the housing sector could impact future confidence.

“In the short run, we expect things to get a bit worse before they improve and consumer confidence to decline,” says Chris McCarty, director of the Survey Research Center at UF’s Bureau of Economic and Business Research. “The obvious culprit is the effect of the now burst housing bubble. The argument that the effect of the declining housing market will be contained has now been proven incorrect. What was a surprise was the extent to which investment in the U.S. housing market had become a global phenomenon. Central banks around the world have discovered that they cannot insulate themselves from this problem.”

There are also some signs that consequences from the housing downturn are creeping into non-housing related employment, McCarty said. Employment has been the bright spot that had been keeping the economy afloat, he said.

Gas prices also are hurting consumer confidence and they are unlikely to improve anytime soon, McCarty said.

“Gas prices have risen in September, a time when they typically fall due to lower demand following the summer travel season,” he said. “Given the Federal Reserve’s dramatic cut in interest rates, the dollar will be lower with respect to other currencies, which will ultimately make gas more expensive.”

The Federal Reserve reduced its benchmark interest rate on Sept. 18 by an unexpectedly large one-half percentage point, to 4.75 percent from 5.25 percent.

“Some economists question whether it was wise for the Federal Reserve to lower interest rates so much,” McCarty said. “This may simply delay the inevitable, which is that the prices of some houses will have to decline to levels that more closely follow the trend.”

The slight rise in consumer confidence was due to increases in three of the five components that make up the index. Expectations about U.S. economic conditions over the next five years rose four points to 81, while expectations about U.S. economic conditions over the next year increased two points to 72. Perceptions of personal finances now compared to a year ago inched up one point to 73.

The only component of the index to decline was perceptions of whether it is a good time to buy big-ticket items, which fell two points to 83. Perceptions of personal finances a year from now remained unchanged at 88.

The research center conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for September was conducted from 423 responses.

Consumer confidence is designed to help predict buying patterns by measuring the mood of consumers toward purchasing. Although other economic indicators also predict buying patterns, consumer confidence tends to be available sooner. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for the year. The value of the index is in comparing changes over time rather than looking at an isolated month.

© 2007 FLORIDA ASSOCIATION OF REALTORS

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Florida’s Existing Home Sales Ease In August

ORLANDO, Fla. – Sept. 25, 2007 – Low mortgage rates, low unemployment rates and strong demographics continued to reflect positive economic signs in Florida in August. Statewide, sales of existing single-family homes totaled 11,279 last month and were closer to activity in August 2001 and 2002 – before the peak of the housing boom years – than the August 2006 figures, when 15,252 homes sold for a 26 percent decrease in the year-to-year comparison, according to the Florida Association of Realtors® (FAR).

Florida’s median sales price for existing single-family homes last month was $231,900; a year ago, it was $246,800 for a 6 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In August 2002, the statewide median sales price for single-family homes was $141,200, for an increase of 64.2 percent over the five-year-period, according to FAR records.

In July 2007, the national median sales price for existing single-family homes was $228,600, down 1 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $586,030 in July; in Massachusetts, it was $365,775; in Maryland, it was $323,838; and in New York, it was $249,700.

NAR’s latest market outlook notes that disruptions in the mortgage market are dampening the forecast for home sales, particularly in August and September. However, the mortgage markets will calm in the months ahead, says NAR Senior Economist Lawrence Yun. “The volume of existing-home sales this year will be better than 2002, which was the second year of the housing boom,” he says. “Conventional loans – the vast majority of available financing – are available to creditworthy borrowers. Buyers in most areas who do their homework will recognize that housing remains a good long-term investment.”

Sales of existing condominiums in Florida also decreased last month, with a total of 3,380 condos sold statewide compared to 4,522 in August 2006 for a 25 percent decline, according to FAR. The statewide median sales price for condos last month was $196,800, down 3 percent from August 2006’s condo median price of $201,900. NAR reported the national median existing condo price was $230,600 in July 2007.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.57 percent, according to Freddie Mac, close to the average rate of 6.52 percent in August 2006. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the West Palm Beach-Boca Raton Metropolitan Statistical Area (MSA) reported 568 existing homes sold last month compared to 655 homes sold a year ago for a 13 percent decrease. The market's median sales price for homes was $366,200; it was $386,000 in August 2006 for a 5 percent decrease. A total of 435 existing condos changed hands in the MSA last month, down 16 percent from the 515 condos sold the previous year. The existing condo median sales price in August was $209,000; a year ago, it was $220,300 for a 5 percent decrease.

“Palm Beach offers a unique lifestyle, with beautiful beaches, cultural amenities and other wonderful opportunities,” says Norma Mirsky, president of the Palm Beach Board of Realtors and president of Mirsky Realty Group. “Mortgage rates continue to be very favorable and this is a great time to buy a home in the area, especially if you’re looking for a place to live in and call home.”

Among the state’s smaller markets, the Fort Walton Beach MSA reported a total of 219 homes sold in August compared to 255 homes a year ago for a 14 percent decrease. The existing home median sales price was $227,300; a year ago, it was $229,200 for a 1 percent decrease. A total of 51 existing condos sold in the MSA last month compared to 47 condos the previous August for a 9 percent increase. The market’s existing condo median price was $311,500; a year ago, it was $356,300 for a decrease of 13 percent.

Harry Millsaps, president of the Emerald Coast Association of Realtors and a Realtor with Prudential Coastal Properties Inc., says that home sales are returning to a more normal pace in the area, with buyers attracted by the laid-back, friendly lifestyle. “The Federal Reserve Board’s recent cut in a key interest rate could make it easier for many people to find an affordable mortgage that’s right for them,” he says. “It is especially good news for homeowners with adjustable-rate mortgages; now, as many ARMs reset their rates, those borrowers could see some savings as a result of the lower interest rates. Buyers seeking to make a long-term investment in a home of their own have more options now.”

© 2007 FLORIDA ASSOCIATION OF REALTORS

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